PSB - Earnings call transcript Q1 2020 | PS Business Parks, Inc.

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Operator

Good afternoon, and welcome to the PS Business Parks First Quarter 2020 Earnings Results Conference Call and Webcast. At this time, all participants have been placed in listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions]

It is now my pleasure to turn the floor over to Jeff Hedges, PSB's Chief Financial Officer. Sir, you may begin.

Jeff Hedges

you. Thank and PS joining call. Business everyone first for you XXXX quarter Parks' thank morning us for the Good investor conference is Financial Chief Jeff This Officer. Hedges,

Executive Petersen; Here and Officer, Interim is with Chief me Trenton Groves. COO, our and John Chief Accounting our Officer

control, historical let forward-looking of statements. a statements subject included we These than begin, all are number of forth other cause which risks conference such Parks' to uncertainties, PS and remind forward-looking materially me Before in in that set this by could everyone which results statements, those beyond differ statements of implied to forward-looking facts, actual are call are statements. Business many from or

no speak the events, revise as of or statements as conference any date forward-looking forward-looking statements, call. result otherwise. only future to Parks information, obligation of new whether update this All undertakes a or of PS Business

the Business and Company X-K. affect statements, including additional on please that could Exchange XX-K and Report For adversely our XX-Q and to Form filed reports and uncertainties Commission, Annual about on Parks' forward-looking information the Securities reports Form PS subsequent by risks refer Form with the

included also and found measures measures. non-GAAP financial We to website certain at press our earnings on our Reconciliation these GAAP of provide will supplement, non-GAAP which be is in release financial can psbusinessparks.com.

I will now JP. call over turn the to

John Petersen

for today. we And us joining hope yours Thank Thanks Jeff. are and you well. morning. Good you

and you CEO, leave currently President Hawthorne, know, related on of not our As COVID-XX. many medical Maria out to is

complete hoping a and her recovery. wishing and We for well are speedy

start highlighting pandemic and quarter. the discussing time our would COVID-XX strong spend our like the most first I will We our of today of response. by But to effects

in with the in during square growth each production growth. rent of signed markets. million led in March team was that cash rent feet Included our a robust Seattle the of X.X foot rent growth, in leasing renewal positive with quarter our with XX% XXX,XXX Our production the we and X.X% square way

this As capital our significant customer signaled did strategic had eliminates fantastic we that of a us, rent that But project year. for produces you property. July not planned the for the in repositioning growth recall, team also this but only that executing a may we had renewal may vacate job

two to Regarding is in and have the have the discussed to vacancies activity continue large quarters. Santa expect next released Hayward spaces other and we previously these Springs, we strong several Fe over

QX, in we XX,XXX is Dallas. In building also QX. $X delivery in square project we million are an This expecting and of planned, as commenced industrial construction foot, proceeding

engaged construction Concerning in industrial and we we the pursuing off market with pricing. development Seattle, conditions but and construction remain until satisfied similar on hold will commencing are on permits, are this we development

are will regarding as Tysons, pricing we development we that our plus construction fundamentals. Similarly, planned multifamily Virginia, unit pre-development The of work evaluate in and project that put site Brentford XXX at Mile, completing on hold market

we will results say, QX Jeff are to needless moment, but in very a through QX. in what pleased with walk financial accomplished we

for working business weeks, changed our have last have open productive and highly our much over has course, several Parks Of teams remained remotely. the been but

unique past tremendous the we occasion acknowledge what have in several effort of offices extremely have risen weeks. they home proud to our over team like tackled field to our I'd throughout and the and organization as these accomplished I'm unprecedented these of the challenges. and

and pandemic impacted all As significantly COVID-XX the shelter-in-place have the orders resulting know, we commerce.

unaffected. in disruption March, of the collections Although March much our the month of began were

and over rent today, on XX% of April progress relief our also in we to made. are lagged. And collected as be requests. continues this and more minute Jeff will have collections provide a discuss

requests. team took pandemic of manage to the process evaluation the of quickly magnitude the developed relief intake and standardized as March, hold, rent In our a

and been all be continue our impacted not course, pandemic. to have loyal this customers will but we been businesses willing be by whose Of requests have partner will with to granted,

and already customers have eligible assistance of our are most government for applied in more for Importantly, programs. fact of one the or

in into leasing parks, volume to effect with their when shelter-in-place our tour leasing as to orders hold. end the and mid-March, went put the in Moving slowed tried on companies activity requirements most uncertainty of now deal dramatically

warehouse the from an of is are users. calls we essential last supply, activity. Over see businesses, demand in touring Much couple e-commerce, to coming current of beginning weeks, the uptick medical and and

in While with are growing customers businesses we long-term and working searching requirements. whose this some for short-term of the are nature, are activity some during is credit pandemic

some with us accommodate forward. and able the move to renew like Additionally, of other relocating take conservative to to opportunities we approach we more and have we expect instead existing customers' this decisions downsize been as or parks,

Looking economic we of optimistic activity, while reduced lower demand expect time. pandemic remainder as are of anticipate the effects leasing we about occupancy we the some will endure and ahead, for recent XXXX through this

to Jeff. over Now, I'll call turn the

Jeff Hedges

QX I'll recap results. our JP. you, with financial a brief begin of Thank

mentioned, productive and also grew JP cash of growth X.X%. NOI led net a As The quarter, our X.X% Mile, Same we diluted income per with first at performed $X.XX Park share. of had by Highgate NOI well common property, multifamily

quarter, FFO increase distribution, from the for year. share. the quarter for Funds for was per or of FAD, $XX.X $X.XX the prior was an million available X.X%

recurring FAD Same of X.X% total to Park approximately driven addition capital growth, which the by NOI were in increase NOI. was lower expenditures, cash cash total In

of we to dividend out Board in to quarter paid June shareholders on Lastly our June in first that the record QX, and $X.XX $X.XX to a quarter common on paid declared the I'll dividend be second recently of a XXth. XXth of shareholders point on

month impact the April, rent. March, operations. In that amount. of over of million collected of COVID-XX that to billed $XX.X $XX.X billed and amount. today, And the we've XX% now over million XX% of on pandemic of In of we we collected as current Shifting total the

and customers yet stores have because April's industrial that been shuttered. rate collection retail large have the the portfolio segment storefronts are of warehouses XX%. not The paid retail-oriented A to attributable industrial our furniture as of portion bedding rent tenants is such

below at also our some still portfolio, retail XX%, but as We exposure rate which higher had have flex well historic a segment average. a collection within slightly

Our as is with GSA loan been contractors well with portfolio and of not affected property, XX% anchored segment the XX% with shelter-in-place multifamily rent of who office leases have portfolio by collected, this At we our as government April's performed leases of April's rent. collected has have Highgate, orders. our

indicated of rent who product all sort. be types, their not the seeking have customers Across have relief may rent of majority April some paid they our

they XX% rent seeking As roughly of of may our have today, be given relief. that an indication customers

customers. applications rent received have XX% we However, relief from of only

on the periods case-by-case basis. relief relief rent application far an expect are to The have XX and months. to thus deferral move base six payback months we we have requests we that of generally rent averaging rent We a form in for as average evaluating been with one forward agreed of to each what three

we abatement, small instances, amounts our the of tenants amenities agreed cafes to and gyms generally of and as limited In reserved serve form for that but have small our this has retail rent been parks. relief in

-- of than deferrals past will NOI last defaults impacted levels, customer Park formal lower Although we negatively several years. cash higher will and levels guidance, we quarters rent XXXX do over not we do occupancy the by Same be rise to three for expectation the what expect an have provide that that experienced

items and and of impact depend The will and on the pandemic regional the the economic the recovery created these length severity national magnitude by the levels. of at

Importantly, with strength. position a balance and us react fortress of to sheet provides these our liquidity to ability the challenges from

no debt outstanding. have We

future form commitments. the have capital very of little in We

We on have approximately $XXX $XX million including borrowing million credit capacity our facility. of and cash of of liquidity, million $XXX

position, us make material and the strategic Our long-term the flow cash ability generation. the to with capital appropriate liquidity decisions strong of lack with affords our portfolio combined of of our the crisis, into leading goal flow maximizing commitments cash strength

to that, turn JP. With it I'll back

John Petersen

Jeff. Thanks

I questions, Before just call we point reiterate the Jeff the made. turn want to over for

we our business are business long operate prospects PSB's and strong. always, for the As term

While been the base emerge have customer this will our will many believe of our most and impacted, from lead we recovery. customers

quickly well-positioned and experienced act will respond are arise. many upon and parks great Our cycles battle-tested in opportunities is they team our markets as and over

the Lastly, with strategic pursue objectives. long-term sheet, are cycle manage continue pristine balance able through to and our our to we

open Operator? With now the questions. that, call for will we

Operator

we'll And Manny to with Korchman first Citi. Instructions] go [Operator

Katy McConnell

some small change versus what the This for on Could McConnell Good about Katy you impacting commentary your Manny. result do opportunities tenants trends all format picture it? long-term could this, provide bigger of out on been industrial is just you large think come in how morning. crisis as of a And has demand the could thinking differently? how portfolio

Jeff Hedges

question. Good Katy. Hey

been has we think to and Unemployment, the there very early as we've this down I all eight still all, first look we're know. over list, impact, at we which And this six million last XX pandemic. the the into weeks, of impact seen as So, jobless -- dramatic.

been economy of think as I So, has impacted. the our all all -- of

And some impacted of larger companies of companies. come have the maybe more so smaller than our been some

are how are that how we with So, dealing with they and dealing it?

economy all we're Well, to gap the to starts here as this trying reopen. bridge

rent smaller requested our pointed And companies, of also out, Some some companies our guess of deferrals. as Jeff some relief. requested have what, larger have

have that a note company. it it's a may with are a doesn't just mean important they and customer small -- So space because to small us,

with have doesn't other it the company. mean large because they they On just a us, space a large hand, are

those have how you user bifurcate think I So, about to careful be you sizes.

a has but warehouse, we warehouse. have they large employees XX have only example, company but XXX,XXX that they small for have a square foot So, a

example. requested So, deferral, for they've

you see and bit some key parks One large mentioned, some concentration looking of key for were of our we in that locations a to requirements. into some things, is a short-term size starting the of little our from companies, both -- small, as forward

get We are to and But determine once But mentioned freeways, to even as shifts could where our forward to to forward to think the it's be. benefit the warehouse the more in see be we our there of ports, be are we too nature needs store infill parks cetera, demand. through going e-commerce. terms There early located, going of pandemic as need transition shift could warehousing what this close going are we earlier, goods. I Again, could it. et parks, through long-term going

these environment, short-term short-term trying done us long-term address growing in their hoping through done companies we might some with can have we leases to for We've some and business not they needs. because this we're otherwise that generate needs, are

So, long that there, a does but answer question? your little bit

Katy McConnell

then Yes, far Based that just April, in so that's great. you. bit you've one little a talk about you in rent dip And can on collections follow-up. quick maybe seen Thank tenants what your release? around expect of remainder percentage XQ? those underwriting for that? collections of you do sort to you of in And can grant parameters any provide the If the rent what

Jeff Hedges

Jeff. Katy, is this Yes,

about talk early we in JP reopening. -- now to said, as And we're of just So, our believe we we're all still the in regions, starting this.

the continue we that going to So, challenging June tenants. for be a to are May do our expect and months of of lot

I our thus we far. think been relief. in formal may as our that, communicating applications indicated very rent We have translated that we expect tenants. with said, seeking at XX% this tenants will have of relief that point XX% that have do grow. be XX% proactive But to Only they And,

We depend don't to going business. exactly that length can have how terms of large that's severity any real will to to regions give shutdowns back quickly in our and of on and how various the guidance the grow get because

and far we are to have May customers are in challenges say, to cash some flow who shuttered of going needless months how right is do continuing June. TBD. the to that our expect of beyond But now And that effectively

with as help loyal bridge the that think are, and said, percentage about we I of we as it, J.P we work and and gap through partner then, put to on JP, want of talk to the continuing here But work weeks requests we'll try And expectations grant? do pandemic. with few have, the customers months we that and the you the next our as

John Petersen

Yes.

needs. their thorough As an at discussed of think have cetera, take I into each statements, prepared do and a we request these, his and their looking evaluating financials, business individual process look basis, long-term pretty we in their et Jeff we on remarks, and

some let's who it. our need say, may requests or there needs And are opportunistic, not and may companies with that are is to help these goal does who and And determine it.

us to on for it's really. so, early too percentage this a put And

an XX% who actually Jeff said, filled As have have only of those inquired application.

-- process. the thorough we're statements, applied in submitted they through us? they for really government go four collection, into we a only assistance? financial the of So, to weeks April Have requisite we're statements So, bank pretty it. terms only Have

just So don't anything say it's for too so to We to that or going know early be it's me it's new. that. as XX% like XX% or

Katy McConnell

it. Got

you. Thank Okay.

Operator

next go can to Please we ahead. go Brendan Finn And with Fargo. Wells

Brendan Finn

on Thanks deferral color you guess requests. gave taking really the collections Hey, I the appreciate guys for guys. my rent questions. and I

that you know opinion of of For government? your filed those or formal likely haven't the tied the them but customers seeking in rent XX% terms requesting that grants are from is relief in loans application, relief to

John Petersen

weeks, world Yes, XXth. was Brendan, It's last it April XXth And the on the April last so also let's recently, fluid, over what say, this or in is four a different we've seen on is right? April two especially than XXth weeks.

as of have them, for the us application a with So, what process markets applied -- we've know. passing there that, Jeff see start -- these a programs seen companies some and number some to start we'd all, for need is, -- and relief, reopen, pointed okay, to with we day, to first as companies we will government each of out, as you as they see are

then stand-alone basis they from on the they So, try and decide, get that relief do it is once that, they and the that a and rent? request government, have and okay, evaluate we request did pay

then, those about requests, we're program. it, need application, rent. say, sometimes, I'm the fill the And rent and But -- say, we from to to government just they from not the going they forget the pay pay out assistance

I through need thought they money. is Maybe reopen going the than economy to don't the it process. want to be. Maybe I would the go sooner don't

-- theme really it's earlier, to as and again, really fluid So, said it's I I it's guess, pinpoint, a here. hard

wouldn't Jeff, you I think, agree?

Jeff Hedges

designed Brendan, do cooperative here need relief, Yes. do not partner where appropriate. be customers going such that I'll relief, we've the that really that, to not add maybe who and ensuring handouts. are just the we is process on focused need who And we're we're The giving with customers with

the deeper they to not what, in we that would in I make continue So, least we're keep close for mentioned, we're think opted have, a like who reviewing now, initially as formally diligent relief, We'll been And eye we JP as at apply. just -- is and of requests may it for decided each designed little to our evaluating case saying, customers have process thoroughly. sure to that get on at we'll reason, some point, be here, fine very I'm come to the this continue a and opportunistic in.

Brendan Finn

opportunities, here assets similar about before that, appreciate you a then, you acquired bit, And year. have I switching guys guys. guess, Okay, industrial to last just great. little gears talked I seeking the acquisition

is the So, comfortable leverage, you on debt given I balance I saw guess, guess, and continuing to be And would sheet if attractive some you monitor some environment look opportunities? the low for those your you opportunities. and where particularly taking

John Petersen

piece talk looking well to there minute. standpoint so debt capitalize we out are Brendan, acquisition we're discussed, on about the from as And -- Yes, whatever right prepared we're balance acquisitions sheet will Jeff opportunities. actively we're now. in a But a at

frankly, of underwrite this collections of what acquisition terms it's no really in knows is future in like to now, right terms looks the frankly, rent up. hard rent because has of growth, an terms the very And But and us in for market dried going. one occupancy, source where to

there be will be the we'll and So, ready. in future opportunities

have to if the you or during And then the company. balance were really that's grow do we on great the it past, able at And and back whether opportunities. was tech when our financial we really look we the to wreck crisis, after sheet now after capitalize

affords going to is were, are to frankly, settle prices little pay the of pursue. the nothing out now, very that if And there markets that And we're bit. this ability really acquisition for down hopeful a yesterday's a But to -- right we're really there future pounce unsure point. on opportunities there while at we not we're this us once

about So, piece? Jeff, do talk you the debt want to

Jeff Hedges

Yes.

growth be as sources capitalize don't we look debt, When opportunities currently JP capital, all opportunities at those including get we present those we some and said, So, on to do have right will will which themselves, from sheet. we'll there expect point. aggressive the balance at opportunities of time,

equity, But would we opportunity and thought look here tied as case. that we're growth prior on equity and that capital that We the as were where you've was when appropriate. calls if be it debt open to today, talking sources common heard debt a us to And issuing preferred around appropriate. will strategic we say of remains growth

Brendan Finn

Sounds good. Thanks guys.

John Petersen

Thanks Brendan.

Operator

next go We'll Please go KeyBanc to Craig Capital. Mailman with ahead.

Arthur Suazo

guys. Hey, on for Artie This is Craig.

feet Just and XXX,XXX on a update quick square feet. XXX,XXX backfills, bigger two the square the

mark-to-market? kind and timing as know a color on the quarters. it XXXX should you about Just guys any more think But backfill? said we of expectations I several

John Petersen

real you space do is Well, to can pushing there or in parts as either we're But to imagine, interest it's a And spaces. both of question. the all of not spaces, backfills. hard XXXX good the

level -- a And there so, activity. environment, might frankly, this normal, we're But different what new bit maybe this have with we little with the in we're encouraged -- no is now. done of is pre-COVID

we going forward. hope stand comment. we're -- that announcements And -- in are still about going still of I see. some Does ability to buildings. move several -- I'll we'll by to here interest, quarters they've lot confident the help? buildings a our here these have attracted to these but chances. good But like It's good and our we're They're XXXX,

Arthur Suazo

you. it, Yes. Thank Got thanks.

Jeff Hedges

Okay.

Arthur Suazo

the a then, And just rent relief. follow-up on

relief a little You guys requests tenants said more that, the industrial obviously, are flex exposures. coming retail and most of from with

-- missed retail those guys makeup is percentage but I your of a types what put portfolio you if or did Sorry, how many it, behind of tenants? exposed

Jeff Hedges

to the Jeff. just paid did retail But is, exposure customers details. clarify April. I the not said we who What was have reference those release is this not we want something. to Hi, on in No,

little exposure But the across has most to a regard with we've seen having requests, the general kind payments. more the have all think been statement, certainly, of as been relief who retail their difficulty spread where are making a April customers I The pressure industries.

Arthur Suazo

it. Got

me. it Thank Okay. you. That's for

Operator

Anthony with go JPMorgan. Instructions] go to [Operator Paolone next Please We'll ahead.

Anthony Paolone

Great. Thank of out of emerging or certain rent you. anything there areas? worse in in collection terms better Is geographic the dynamic

John Petersen

of A there. relief Yes, Tony. Surprisingly, we've would there favorable Metro. -- it's I now, lot the seen say. And right government requests better Washington more rent in the healthy economy is

because high service Southern like amount requests, higher California we the have businesses. in that some have front industrial of mentioned, disproportional a of maybe has our parks, of because small partially retail partially that we a concentration of Jeff

Florida, ties to because more that lastly, America Latin with had some you'd the requests the a of And down we've of a Texas, maybe slowing what bit expect. maybe in trade, kind bit.

Look, seeking this -- everybody relief across is but not for industry rent everybody, it's requests. types

say, in So I'd and more Does and good -- some that maybe especially, DC help? Southern California but in Florida.

Anthony Paolone

you then, think helpful. that's like your year thinking What of the XX% here, retention do where And -- we lease if about at been And running? just I do rent. of the happens total schedule, Yes, think here? rest through from it's what tenant has mean, expiration look just you

And half like backfilling, decent have a of keep on around, like, put delay is tenants to in only trying if quarters or trying near-term. brackets in there of could occupancy magnitude you your this some and the to the three order understand

John Petersen

that reaching of aggressive we with year? much more We're out a we XX% we But really Tony, had is being you the retention. little as rest strong our QX renewal. what bit do are further. Yes. with unlikely. know, a Maybe in already doing the Can

our and out the that, Some not maybe here. customers Maybe going said, willing I'm of I'll grow look, stay to renew customers advantage Park. of now, taken relocate some to have and of our I'm of

to with in XX% kind working we're And force terms that's XX% going really be think. proactive would hard in customers range, keep to retention our So the I our us of rates. opportunities to We of this into leases we how because, going think in you is were certain know, as still markets we vacancy at structure rent low the there to maintain forward. heading pandemic, to all-time

there. still not space lot is there a And -- of out not

where be customers should as is, and us. their else. future us what they they just may should in more confident more put staying into starts somewhere like our have what help are than that And may help to also reopen, the moving So, looks visibility economy

we So, Does help think going help? with retention will us forward. that that

Anthony Paolone

Yes, it does.

right ticket done? time such a delayed of has being to leasing quarter been What going pushed understand in historically and of is lease it to a it of it get or ends the a cycle of months just much And just two like months are couple You now. that the normally up could flow sort to amount Is be like average trying a a and quarter size. business, out? of how couple given a

John Petersen

our business is, the pretty mentioned is, the I about quick. turnaround doing of news like out good now time Yes, is earlier. further, reaching What smaller some we're we're

earlier than deals have. and we And done and a with might each still them dialog have we So getting -- every earlier we're otherwise week.

our accomplished right of proud to timeline more being they've renewals. doing short for we're versus still I'm We're And now. trying process what We're teams circuit the here. And less. the in aggressive

and if with Now, now, what that's we're all really deal a wants, hey, forward. is, do give what that's look in working across And goal But markets customer our the thing. a get hard our renewals. done terms that's good of try as of can always to take we a and they

Anthony Paolone

it's do you will then but of it. Jeff. year? huge just capital And the be for what I spending the question think Got not over know numbers, last balance

Jeff Hedges

course year. capital we're to what We capital, the than that from the expected did leasing were -- directly end be now we how lower a is perspective. accomplish of production QX little especially to in capital think and able I going impacted by a of much probably -- transaction our recurring was between

of able remainder and of good of to able be we're We renewals leasing to because a year that's type of what what probably going really pretty it's type of think any give really what directly resulting rate, indication run like although looks from new the hesitate do do. that we're we to the to types

will ongoing. a of development year, roughly continue million and development But we from there. a development $X perspective, from JP maintenance is Dallas also That total spend through that then capital that have and the perspective, the mentioned

no that be sensitivity And some small of we that have getting phase to have project, do dollars on have any capital forward Tysons, ready we on next site Seattle work in nor requirement the on But move there. the then, spent project. we time for will development

both development the remainder from maintenance the through year. of pretty So, the perspective, be minimal capital and to going it's

Anthony Paolone

Thank Okay, you. got it.

Jeff Hedges

Thanks Tony.

Operator

we'll next with to And Advisors. go go Eric Please Frankel Street Green ahead.

Eric Frankel

Thank you. was experienced hoping can of your debt probably highlight just think maybe and I expenses been of the kind rent about month in rest you're bad of just -- terms year? just can your historically overall you and what what have the we you've that this collection, something for what

Jeff Hedges

the just so quarter? prior question, Eric, Yes, back to cycles you you your looking do for historically, clarify mean or when just to say recent

Eric Frankel

Yes.

John Petersen

Okay.

So our--

Eric Frankel

if Both possible.

Jeff Hedges

Well, actually we that some been as We start But -- actually did minimal. -- written of off. in actually -- expect. with had in have a prior was we QX recovery I'll amounts had debt bit bad QX have you'd prior Okay. of fairly write-offs quite

pretty negligible an QX was from perspective. it net-net, write-off So, in AR

over back in back But great then. the that percentage total the that got ever points and XX look come close back was going as to annual revenue, And we our we to write-offs highest of XXXX. haven't -- since was basis financial crisis,

years. So, area points kind XX XX in that over to last right averaged the several basis we've of basis points

Eric Frankel

you. Got

that -- can't possible. they worked and after leave try as of any if just further of they pay backfill rent, if So, you Is as generally, quickly the cycle? generally kind tenants how kind the they pay they to rent if in past pay leave -- of it kind you just --

John Petersen

exactly that's Eric. Yes, right,

It's If for been you since that way you don't don't I've pay, stay. been -- here.

with a short that pay. fuse we -- it's So, have don't pretty customers

Eric Frankel

quasi actually mention or of sort -- what or of actually restaurant some And a cafe did just you quasi direct of in -- something color. the That's circling on you. Got either terms helpful base exposure, like back percentage is has actually tenant retail establishment? then, your retail is or retail

John Petersen

to But at may I'll I'll auto with turn park, industrial specific center. some didn't an major or street might Yes, Eric, a way front one that and either talk of and interface component that percentage. look park service Jeff. start showroom we with it an of have then is, the or maybe a about thoroughfare We a kind component the have to

may So, units industrial some within service-oriented of spaces, of be park an our part those retail.

of -- earlier, to Jeff shut by some those shelter-at-home been what so, down And orders. the have said those

going that's So, on. some of

And eat have go, our and congregate here and -- know can we where what various a then, I like a customers the like parks, -- workout about facilities have some in little it's thinking cafes and amenities -- don't of lot we customer but like or gyms workout or I'm areas delis or or things that.

furniture that that So, other industrial true mattresses, the that's a We retail, We have an like things of in number have park. a things has store. has But have a do it's primarily been of park that. shuttered huge do too. not Southern of a some front But those We in terms retail. California. do on otherwise have park that

is want do that... have we lot. a you not some So, that, to Jeff, or but of Eric, elaborate

Jeff Hedges

perfect do your earnings supplement The table. I question, it's an in and thing, concentration our think that's a do have aware, a category. what answer pretty you're retail, not to while as industry Eric, automotive And for we only food include good we explanation. and --

And question in to within with general answer type kind things mentioned is. specific is characterizes I'd that home the also mattress to that that, of and a of nature. stores some retail while perfect the JP furniture exposure I not usage would say that you retail regard furnishing where say other of then, that and

Eric Frankel

Okay, thank you very much. Appreciate it.

Operator

And there are no further at this time. questions

for Jeff closing it any back remarks. turn I'll So, to

Jeff Hedges

and everyone Have everyone remains you thank that safe here joining very forward healthy, you look again Well, right. all We All with great a for hope day. us to and today. talking we soon.

Operator

a today's have day. does you This We may participation your and appreciate conclude now wonderful and disconnect program.

PS Business Parks (PSBXP) 30 Apr 202020 Q1 Earnings call transcript